Kutaisi International Airport: A Gateway to Europe - Interview with Irakli Karkashadze, Director of the United Airports of Georgia

The United Airports of Georgia holds ownership of all airports in the country, with the management responsibilities currently encompassing the Kutaisi International Airport, along with the local airports of Mestia and Ambrolauri. The company’s primary focus is on fostering the growth of the Georgian aviation industry as a commercially viable enterprise. Their overarching goal is to attract both local and foreign airlines and investors, thus making the Georgian aviation sector an economically appealing prospect. In this exclusive interview, Irakli Karkashadze, Director of the United Airports of Georgia, delves into the pivotal role that airports play in Georgia’s economic development. He discusses the ongoing efforts to improve infrastructure, the latest trends in passenger traffic, sustainability efforts, and the challenges faced in effectively managing airports. Furthermore, he shares his visionary outlook for the future development of the industry.

Can you tell us about the role of the United Airports of Georgia in the aviation sector of Georgia?

The United Airports of Georgia owns all airports in Georgia and manages the Kutaisi International Airport, which is the second largest international airport in the country, and the local airports of Mestia and Ambrolauri. We carry out aviation security activities in all airports of the country, as well as supervise the operating company of Tbilisi and Batumi international airports. Our role goes beyond technical operation; we are focused on developing the Georgian aviation market as a commercially profitable business and attracting local and foreign companies and investors. A grand vision lies ahead for the Kutaisi International Airport, which aims to become a regional economic leader, transcending its identity as merely an airport and evolving into a catalyst for significant economic growth. The ultimate goal is to establish Kutaisi International Airport as a gateway to Europe, securing Georgia’s seamless connectivity with the world.

How do the airports managed by the United Airports of Georgia contribute to the country’s economic development?

According to Eurocontrol, Georgia is the leader in restoring air traffic and is ahead of all EU member states. Georgia has open skies policy with 32 countries and visa-free regime with up to 100 countries. In terms of international passenger traffic, an average growth of 22% has been recorded in the last 7 years before pandemic. Since 2021, airlines have commenced operations at the international airports of Georgia, introducing 13 new European destinations and 10 new Asian destinations to their flight schedules. The service area of the Georgian airports includes 12 million people within a 6-hour driving distance.

Our airports play a crucial role in facilitating business relations, tourism and cargo transportation with the country’s strategic partners. They also contribute to economic and social development. Local airports help stimulate domestic tourism. This is a fully government subsidized project administered by us, the United Airports of Georgia. The country’s domestic airports offer a convenient alternative to the arduous 9-10 hour drive, as flights take only about 35 to 50 minutes. In addition, the United Airports of Georgia is one of the major employers in the regions of Imereti, Svaneti and Racha. We have plans to expand the area of operation and develop more airports in other regions of the country as well.

Are there specific plans for expanding airport infrastructure to other regions?

We are in the final stages of completing the Telavi airport project. Soon, we will offer domestic flights, connecting Telavi with other regions like Batumi, Mestia, Kutaisi, and Ambrolauri. This project will contribute significantly to the development of Kakheti.

What factors make the airports under your management attractive to travelers?

Due to Georgia's strategic location, we have a unique advantage to position ourselves as a prominent aviation hub in the region, thereby attracting transit passengers. Our primary focus is on fostering an environment that promotes the growth of the Georgian aviation industry. This entails supporting local airlines, expanding international flight connections, and creating a favorable ecosystem for international carriers to thrive. Our ultimate goal is for Georgian airports to serve as independent economic drivers in their respective regions, making significant contributions to stimulate economic growth. We are committed to maximizing their potential and ensuring they play a vital role in bolstering the country's economic development.

Before we continue, let's talk about your career and what drew you to the aviation sector. What were your previous roles and experiences?

My career has been intertwined with the aviation industry for a significant period of time. After completing my Master's degree in International Marketing and Business Development at the SKHEMA Business School in Paris, I immediately joined the United Airports of Georgia to contribute to the development of aviation business upon my return to Georgia. Subsequently, I also gained valuable experience in the private sector, specifically in the aviation field. In total, I have accumulated up to 10 years of practical experience within the aviation industry.

My fascination and deep understanding of aviation led me to pursue further education in this field. I enrolled in the Master's program (MBA) in Aviation Management at the University of Krems in Austria, a renowned institution recognized for its expertise in the aviation industry. This program provided me with extensive knowledge and valuable experience.

Before assuming the role of Director at the United Airports of Georgia, I served as the Deputy Mayor of Kutaisi, where I gained a profound understanding of the pivotal role airports play in the city's development. I have personally witnessed the remarkable growth and gradual development of Kutaisi International Airport. From a few weekly flights to now over 120 flights per week on average, the airport has evolved into a leading tourist center in the country. It fills me with immense pride to witness the airport's transformation, and I consider the year 2023 as a historic and record-breaking year for us. We are anticipating over a million passengers at Kutaisi airport this year.

I am honored to bring my extensive experience and knowledge to contribute to the growth of Georgia's airports and the United Airports of Georgia. My goal is to foster a robust and business-oriented environment for the advancement of aviation in Georgia.

Let's shift focus and discuss the dynamics of airport usage. Could you share recent trends or changes in passenger traffic?

In recent years, Kutaisi International Airport has undergone a remarkable growth trajectory and has emerged as one of the fastest-growing airports in Europe. Over the course of five years, we have consistently maintained an average annual growth rate of approximately 30%. This outstanding performance led to Kutaisi International Airport being recognized as the fastest-growing airport in 2018 and 2019 by ACI EUROPE, specifically in the category of airports serving less than 5 million passengers.

This year, within a span of six months, we have witnessed an impressive 83% increase in passenger traffic compared to 2019. This remarkable growth can be attributed largely to our strategic partner, Wizz Air, basing three aircraft at Kutaisi International Airport. Furthermore, by the end of the year, we are expecting the addition of a fourth based aircraft. This is an unprecedented occurrence, as it marks the simultaneous operation of two based aircraft within a single year at Kutaisi International Airport. The introduction of the fourth based aircraft also signifies a gradual transition for the airport, evolving it from a small Wizz Air base to a medium-sized base. This transformation serves as a crucial prerequisite for further stable development and growth.

In addition to Kutaisi, the international airports of Tbilisi and Batumi have also experienced significant increases in passenger traffic within a six-month period, surpassing the forecasted numbers each year. In fact, the passenger flow in all airports across the country has fully rebounded within these six months. Notably, Tbilisi International Airport alone served a staggering 1,565,760 passengers during this time frame. These promising growth trends have sparked discussions surrounding ambitious projects, including the development of a new airport in Tbilisi.

So, you are considering building a new airport?

Yes, that is one of the possibilities we are exploring. The government of Georgia, in collaboration with the Ministry of Economy, has developed a successful strategy that has fueled this growth and generated considerable interest. As a result, discussions are underway for a potential large-scale project to further develop Tbilisi International Airport. While the project is still in the research phase, we anticipate exciting announcements in the near future.

What plans or strategies does the United Airports of Georgia have to improve services and facilities for passengers?

We continuously analyze the services and facilities at our airports, seeking ways to enhance the passenger experience. We actively engage with international partners and attend aviation forums to learn from their experiences and introduce innovative practices. At Kutaisi International Airport, we successfully held an auction of restaurant services, and in the near future we will have a very good Georgian restaurant in Kutaisi, which will offer quality service to passengers. We are working on introducing services like automatic registration, e-gates, and VIP lounge. We also regularly update security systems to ensure seamless check-in and boarding processes. Our focus is on implementing modern systems and services that benefit the aviation industry.

Are there any ongoing or planned infrastructure developments or upgrades at Georgia's airports?

At Kutaisi International Airport, we have initiated the construction of a new parking space to address the increasing demand. This project aims to create up to 600 parking spaces initially, with the possibility of future expansion. We are also planning to rehabilitate aircraft stands within the airport premises and are in the process of designing a new take-off area. This particular project is of great significance as it will enable the development of cargo transportation, which is vital for the region. Additionally, we will soon commence work on the general plan for Kutaisi International Airport, ensuring its long-term development aligns with regional needs. We are also actively collaborating with air navigation services to optimize aircraft handling and enhance safety measures.

As the director of the United Airports of Georgia, what challenges do you face in effectively managing and operating airports? Additionally, could you highlight an important achievement from your career?

One of the main challenges we face is ensuring we have qualified personnel. To address this, we collaborate closely with the Aviation University and are pleased to announce that we will soon sign a memorandum with Kutaisi International University. Through this partnership, we offer paid internships to students, allowing us to share our experience and cultivate their interest in the aviation profession. This helps us develop a skilled workforce to sustain the industry's smooth operation.

Financial stability is another ongoing challenge, particularly for airlines. We work diligently to maintain their financial viability, and I believe we handle it effectively.

In terms of achievements, I would like to highlight a few significant ones: ფirstly, Kutaisi International Airport has become one of the fastest-growing and largest bases for Wizz Air airline. This year alone, we added the third based aircraft on June 1st and will receive the fourth on December 1st, doubling the number of based aircraft within a year. This is an unprecedented decision by an airline, and it demonstrates the trust and success we have achieved.

Another important achievement is the development of Kutaisi International Airport as a source of pride for the region over the past decade. It's not just about the aircraft and passenger traffic; it's also about the highly qualified local team of 350 employees who ensure safe flights and maintain a 24/7 connection between Kutaisi, and Europe.

Additionally, the airports in Mestia and Ambrolauri have played crucial roles in their respective regions. These airports provide vital access to mountainous regions and contribute to the tourism industry. We actively collaborate with the National Tourism Administration to make Georgia a compelling and attractive destination on the global market. We compete vigorously with leading regions, cities, and countries in Europe and beyond in terms of tourism.

How much of a priority are sustainability and environmental issues in your work?

Sustainability and environmental issues are highly important to us, considering today's global trends. We consistently strive to make our airports more energy-efficient. Tbilisi International Airport, for instance, partially relies on solar energy to power its terminal, resulting in a 25% reduction in electricity consumption. At Kutaisi International Airport, all available ground service equipment is electric, significantly reducing harmful emissions. Additionally, the terminal at Kutaisi International Airport features a green roof, providing thermal insulation and improving energy efficiency in its cooling and heating systems.

Solar panels and energy efficiency are always prioritized in our plans, whether it involves purchasing new equipment or undertaking infrastructure projects. We are currently studying the feasibility of fully or partially powering Kutaisi International Airport with solar energy. Ensuring sustainability and energy efficiency across all our airports is of utmost importance to us.

Finally, how do you envision the development and growth of this field?

Looking ahead 10 years, I envision Georgia being able to serve a significant number of transit passengers and compete with existing aviation hubs in the region. Strong cooperation between Georgian airlines and airports will be crucial for achieving this. We are committed to developing our airports to provide high-quality services and fostering an environment that supports the establishment of robust Georgian airlines. By implementing the right strategy, development plans, and policies, which are currently being developed by the United Airports of Georgia in collaboration with the Ministry of Economy, I am confident that we can accomplish these goals.